Final answer:
Adjusting a business strategy for international markets could involve localizing products, adapting marketing strategies, understanding competitive landscapes, and adapting operationally to local regulations. Businesses must also consider the environmental and political aspects of the markets they enter.
Step-by-step explanation:
Competing across national borders necessitates the adaptation of business strategies to diverse market conditions. Companies may have to navigate several challenges like foreign trade barriers and complex political relations.
Adjusting Business Strategy
A strategy that works domestically may not be effective internationally. A business might consider localizing products to appeal to different cultural tastes, adapting marketing strategies to fit national media landscapes, or modifying operations to comply with local regulations. Moreover, businesses should understand the competitive landscape in the new market, which could be fundamentally different from their home country due to the presence of local competitors or diverse consumer behaviors.
Globalization and Information Technology
New communications and information technology have elevated the competition level by linking markets globally. The interconnectedness of markets can provide opportunities for growth but also poses threats if a business is unable to effectively compete on an international level.
Environmental and Political Considerations
Multinational firms must also consider environmental and political factors. For example, some companies might relocate to countries with lenient pollution standards, which raises ethical concerns and can affect brand image. Politically, a dependence on imported goods like oil can pose a national security risk, prompting governments to restrict foreign imports and influence how businesses strategize their supply chains.